National Minimum Wage increase announced

The government has recently released details regarding the next National Minimum Wage increase which comes into effect on 1st October 2011.

Following recommendations from The Low Pay Commission, the National Minimum Wage increases are set to rise as follows:

For workers aged 21 and over: Rises from £5.93 to £6.08 per hour.

For workers aged 18 to 20: Rises from £4.92 to £4.98 per hour

For workers aged 16 and 17: Rises from £3.64 to £3.68 per hour

Apprenticeship’s National Minimum wage will increase by 10p per hour to £2.60 per hour.

According to The Low Pay Commission, almost a million people will benefit from this rise.

Failing to adhere to the NMW can have serious repercussions for a business, usually resulting in hefty fines.

It is worth reminding employers that consideration needs to be given to the likes of door to door sales people and care workers that may work sleep-ins.

In the case of the door to door sales person, he or she may be employed on a commission basis, however the employee must still be paid at least the NMW per hour over the course of the day, from the time he or she reaches the first client to the time he or she leaves the last client. A lunch break can be deducted from this time.

For a care worker that works sleep-ins, the NMW rules also apply, this is because, although the worker may be sleeping, he or she is at the disposal of the employer during that time, and that is where employers can become un-stuck when NMW disputes go to tribunal.

If in doubt, seek advice from an employment law specialist, it could save a lot of time and money.